Classification of financial instruments: how to incorporate different sources

For banks today, it is imperative to ensure that clients, partners and regulators are able to correctly classify the financial instruments made available by the market. Whether it is a question of offering maximum transparency to those who make investments with a risk margin, of launching collaborations for the creation of innovative services or of responding in a prompt manner to the authorities who ask for clarification on the nature of existing activities, having a clear idea of the boundaries of the areas in which one is moving is essential to save resources as well as to preserve the authority of a financial institution. Especially in the area of compliance, the risks are high: the authorities demand correct reports, and if they are not correct, they report errors by demanding corrections or imposing sanctions. This process results in banks losing time, and therefore money, in audit processes and sometimes also in reputational damage to the various authorities.